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Business Process Improvement Basics: Part 1

What is a Business Process?

Put simply it’s any series of steps an organization carries out to produce some kind of output. That could be software delivery, marketing materials, sales, client onboarding, customer support issues, KYC checks, etc. Almost anything really.

Grouped together they become your operational model - how you actually run your business. As your business grows and changes, or external pressures (i.e. regulations) start to apply you will need to change your operational model and the business processes that underpin that.?

What is Business Process Improvement?

The fundamentals of business process improvement involve identifying ways to make a business more efficient and effective. This starts by analyzing existing business processes and then working with stakeholders to find ways to streamline them, eliminate unnecessary steps, and improve overall flows.

The key components of business process improvement are:

1. Identify the specific processes that need improvement
2. Gather and analyse data to understand how the processes currently work
3. Plan and communicate changes
4. Implementing changes?
5. Monitor to check for improvements in efficiency and/or effectiveness?

This process should be iterative, with ongoing evaluation and adjustment to ensure that the changes are having the desired impact.

There are many potential causes of inefficient operational models and organizational breakdown. The specific factors that contribute to it will vary depending on the organization and its unique circumstances. However, regardless of industry or market, there are some common causes of organizational breakdown including:

1. Poor communication and coordination among team members: When team members lack clear communication and coordination, it can lead to confusion and misunderstandings, which can in turn cause disruptions and delays in the flow of work.
2. Lack of clear goals and direction: If an organization lacks clear goals and direction, it can be difficult for team members to know what they should be working on and how they should be prioritizing their time and efforts.
3. Ineffective management and leadership: Poor management and leadership can lead to a lack of direction, poor communication, and low morale, which can all contribute to organizational breakdown.
4. Insufficient resources and support: If an organization does not have the necessary resources and support to enable its team members to do their jobs effectively, it can lead to delays and inefficiencies that can cause an organisational breakdown.
5. Resistance to change: When team members are resistant to change, it can make it difficult to implement new processes and systems that could improve the organization's overall effectiveness.

In Part 2 we’ll look at why change is difficult and how to minimize resistance to change.

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